Why our shareholders value is keep failing? What did I miss throughout Mikes Bikes simulation?
Our firm’s shareholders value was constantly gone up at first three years. However, it began to drop and now we are at $6 of SHV. It was shocking to see how it changed dynamically and also I found interesting to see all the up-and-down moments within other firms – some were incredibly successful and some were struggling from huge downturn like our firm. The significant problem throughout the simulation within our firm is that we started to consider seriously about our strategy realized that there was something wrong from year 2019. In my perspective, it was a little too late to notice the problem because by that time our company already lost heaps of money and dividend fell down to zero. Once our team found out the problem, we immediately changed the strategy; lowering every expense such as advertising, PR and quality maintenance system etc. in order to increase net assets. This immediate solution lead our firm slowly recover the losses from the damage in the past few years.
Referring to Greiner (1972), our firm is now at phase 5, ‘Crisis of red-tape’. In phase 5, collaboration is the most important process which helps to overcome the red-tape crisis. In collaboration, fast problem solving is required and we need to work as a task-group rather than work it out individually (Greiner, 1972). For the last two weeks, the team meetings were not very successful where maximum four or less members came out of six members. I was hoping everyone turn up in the last meeting this week but unfortunately only four of us were able to attend. Still, we had great discussion and also passionate at replacing our old strategy to a better idea and business model. Nevertheless, it would been better if six of us could participate while decision making.
This is the last journal and we have two rollovers left till the end of next week. Even though our SHV has declined very badly, I and my team members will try our best to overcome obstacles for better results.
Greiner, L. E. (1972). Evolution and revolution as organizations grow. Harvard Business Review, 50(4), 37--46.